Cottage Cheese Sales Climb as Cream Cheese Slips
Dairy and packaged-food operators face shifting shelf demand as protein-focused cottage cheese takes share from traditional spreads.
Updated on Nov. 6, 2026 in Consumer Goods
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Have you bought cottage cheese instead of cream cheese recently?
Kraft Heinz said cottage cheese is taking sales from its Philadelphia Cream Cheese brand as protein-focused demand grows. U.S. cottage cheese sales rose 17.7% to around $2.32 billion in the 52 weeks ended Oct. 4, while cream cheese sales fell 4.4%, a shift that matters for food and beverage makers competing in the dairy aisle.
Why it matters
The shift reflects a protein-driven consumer trend fueled by social-media videos and the use of GLP-1 weight-loss drugs, which is pulling spending toward a product that had long been a niche staple. For operators, this shows how quickly a category can move when a single product goes viral and changes how consumers use it.
U.S. cottage cheese sales rose 17.7% to roughly $2.32 billion for the 52 weeks ended Oct. 4, more than double 2021 levels, while cream cheese sales fell 4.4% to about $2.88 billion. Kraft Heinz's sales fell 2% in the third quarter, and Philadelphia held roughly 62% of the U.S. spreadable cheese market last year.
The players
Kraft Heinz
A large packaged-food company whose portfolio includes the Philadelphia Cream Cheese brand, which holds a majority of the U.S. cream cheese market.
Good Culture
A cottage cheese brand whose sales increased nearly fourfold over the prior three years and which L Catterton agreed to take a majority stake in.
L Catterton
A private equity firm that said in January it would take a majority stake in Good Culture.
The details
Consumers are using cottage cheese as a spread and in recipes such as scrambled eggs and ice cream, uses that compete with traditional cream cheese. The product's resurgence began after it went viral on TikTok through cooking videos. Good Culture, a cottage cheese brand, has seen its sales nearly quadruple over the prior three years, and L Catterton said in January it would take a majority stake in the company.
Timeline
January 2026: L Catterton said it would take majority stake in Good Culture.
September 2026: Kraft Heinz announced new Philadelphia flavors, and Saputo's CEO cited capacity investments.
October 2026: Class II milk price recorded at $19.15 per hundredweight.
Oct. 4, 2026: End of the 52-week period covered by the cottage cheese and cream cheese sales data.
Nov. 4, 2026: Kraft Heinz disclosed losses to cottage cheese on its earnings call.
Market Landscape
The rise of cottage cheese is taking share from a traditional cream cheese brand that long held the U.S. spreadable cheese market. Private equity ownership of a fast-growing cottage cheese brand signals that investors see the category's momentum as durable beyond a single viral moment.
Food and beverage operators should evaluate whether protein-focused products warrant more shelf space, marketing spend, or new product development. Brands that rely on traditional spreads may need to review pricing and promotion as shoppers redirect spending.
The takeaway
Track the category's share movement in upcoming retail sales data to see whether cottage cheese growth holds beyond the current protein trend. Review your product mix against the shift toward protein-forward dairy and watch how Kraft Heinz addresses the pressure on its cream cheese line.
Further reading
For context on how packaged-food brands are responding to shifting consumer tastes, see Consumer Goods coverage.
Source note: This article includes information reported by Morningstar.
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Have you bought cottage cheese instead of cream cheese recently?
